AUSTIN -- New energy rates will come to Austin residents this year. The Austin City Council was in a work session at City Hall Tuesday morning to get an update on the latest rate proposal from Austin Energy.
“We have to step up and face a challenge," said Austin Mayor Pro Tem Sheryl Cole. "We don't want to face that challenge. We could run and hide like every council member the past 17 years has done, but I don't think we can do that."
Proposals for new energy rates have been before the council numerous times over the past year. Most recently, Austin Energy proposed phasing the increase into service in two parts. The first phase would begin in 2012. Rates would go up 8.7 percent, followed by a 3.8 percent increase in 2015. Some Austin City Council members remain conflicted. They say they are worried about the impact a hike will have on certain customers like schools, churches and low-income residents.
“I think that what we really need to do is take a look at an interim rate increase. We have an affordability goal of two percent, maybe look at a two percent across the board rate increase and then allow the time to really sort through the complex issues,” said council member Laura Morrison.
Austin Energy set a March 1st deadline, claiming it needs more money by March in order to survive this year. Without an increase, the company is set to lose some $77 million because its reserves are out.
The City Council has scheduled another public hearing on the rate proposal for 6 p.m. on Thursday. An additional public hearing will be held in early March as well.
